Alpha Vs Carbon
15Rock’s goal is to construct a model to measure the relationship between an Equity's excess return with its excess carbon to optimize portfolio returns against carbon targets and create a new dimension for sustainable decision making.
We break down the Carbon equivalent emission at a granular level to analyze the composition of various greenhouse gasses in the total carbon emissions. To identify companies that greatly emit harmful gasses such as Methane and Nitro oxide.
To create an carbon budget, in accordance with the Paris agreement, for various asset classes and portfolios. Historically analyze the fund or company's ability to meet its carbon budget.
Carbon capture analyses the historical performance of a companies carbon emissions, evaluates a company's true growth in carbon emissions and calculates the risk of an increase in carbon.
Carbon Equivalent Calculator
The Carbon Equivalent Calculator represents the number of units of a variable (e.g. Pounds of coal burned, Miles driven) that have to be utilized to generate as much carbon emissions as any publicly listed company emits.
To compare the Excess Returns of a fund with the Excess Carbon it generates. To assess the correlation between carbon emissions and the skills of the fund manager used in generating alpha.
Carbon Tax Risk
The Carbon tax risk model analyses expected carbon tax regimes and combines this research with the financial variables of publicly listed companies. It allows investors to calculate the Net Income at Risk for any company due to expected carbon regulations.
Calculate the marginal carbon emission per dollar invested by a company. To test the relationship between increase in capital expenditure and increase in carbon emissions and to drive insights about company's capital structure by leveraging this relationship.
Production Emissions Efficiency
Assess a company's performance in the industry according to the carbon emissions per dollar spent on production. To also provide industry level insights, according to percentiles, on each company's carbon efficiency with regards to the money they spend on production of their products
Temperature Conversion Model
To calculate a asset classes' contribution to the increase in temperature caused by its Carbon emissions and to identify the highest contributors.